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Celadon Group Awarded $5 Million Per Year in Business by Volkswagen

21 July 1999

Celadon Group Awarded $5 Million Per Year in Business by Volkswagen; Company to Transport Product between U.S./Canada and Puebla, Mexico

    INDIANAPOLIS--July 20, 1999--Celadon Group, Inc. , a leading transportation services provider that specializes in the transport of goods from the United States and Canada to and from Mexico, announced today it has been awarded by Volkswagen de Mexico business expected to average $5 million annually over the next two years.
    The agreement calls for Celadon to transport automotive parts and racks between the United States and Canada and Volkswagen's assembly plant in Puebla, Mexico. The "Bug" and other Volkswagen products are assembled in Puebla.
    In announcing the agreement, Stephen Russell, Chairman and Chief Executive Officer of Celadon, said, "We are pleased to undertake this business with Volkswagen, a new customer. This contract is evidence of our unique position as the leading provider of truckload services to and from the United States and Mexico."
    Celadon has approximately 2,100 line haul tractors and 6,100 trailers.

    The discussion set forth above as well as oral statements made by officers of the Company relating thereto, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such comments are based upon information currently available to management and management=s perception thereof as of the date of this press release. Actual results of the Company=s operations could materially differ from those forward looking statements. Such differences could be caused by a number of factors including, but not limited to, potential adverse affects of regulation; changes in competition and the effects of such changes; increased competition; change in fuel prices; changes in economic, political or regulatory environments; changes in the availability of a stable labor force; ability of the Company to hire drivers meeting Company standards; changes in management strategies; environmental or tax matters; the results of Gerth Transport ;and risks described from time to time in reports filed by the Company with the Securities and Exchange Commission. Readers should take these factors into account in evaluating any such forward looking statements.

    This release and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com.